Why do i keep buying at the wrong time?

[murray t turtle]

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I LIKE the way in his book,[The RULE] he disclosed he was blind in one eye+ half blind in the other eye.
2] Amazing advantages Larry ''Mint'' Hite had, so '' bad @ sports , bad @ school; '';
he was used to being wrong, so cutting losses was real easy for him.
Thanks.

 

[Illini Trader]

Just catching up with the Sat Morning most viewed new threads and have this point to make. You have a moving average on your chart so that means something to you. On thing that might help is never place a trade when the MA is moving sideways and cutting through the price bars like it was doing when you "bought at the wrong time".

 

[hilmy83]

Just catching up with the Sat Morning most viewed new threads and have this point to make. You have a moving average on your chart so that means something to you. On thing that might help is never place a trade when the MA is moving sideways and cutting through the price bars like it was doing when you "bought at the wrong time".

In other words, pick a slope value range for the moving average that you would consider to be a "flat market"

 

[HawaiianIceberg]

I dunno about you but that clearly looks like a chop zone. So unless it closes above the resistance line (and it failed twice already), it ain't going up.

View attachment 341818

Aloha schizo,

Could you comment on why you drew your resistance line where it is as opposed to the high of the zone?

Mahalo!

 

[schizo]

Aloha schizo,

Could you comment on why you drew your resistance line where it is as opposed to the high of the zone?

Mahalo!

I could have drawn at the top. But ultimately it's the context that matters. For example, where does it close in relation to the previous resistance. If it's a failed breakout, should the high for that bar be counted as legit, etc? Consider the following scenario with regards to the chart below:

1) This is the high at that time, making it the resistance.
2) It pierced above 1 but failed to close above it.
3) Not only did it close below 1 it reversed and came back down to the support.
4) It retested 2 but also failed to close above 1.

But now that you have 2 and 4, you probably will want to redraw the resistance at the top. In either case, we're still in a chop zone and until price closes above 1 any probability of a breakout would be low IMO.

 

[Akthuri]

trying to figure out if there is some faulty programming that makes me see something that is not there.
I got caught in this exact type of chart pattern more than i can count. So obviously there is something in that chart that is making me think that its a good entry point.

Where chart cuts off is where i bought. Thinking that it will have another run up.
The price seemed to have a strong push upward wirh alot of green order walls coming through.
The volume was good.
And then it reversed and buying pressure just died.
I dont want to mention the ticker yet because i want to see what other people see when looking at that chart.
Is there a trap that im not seeing in this move?
Can yall tell me wha you see on this chart?
I want to compare it to what i see and maybe find the fault in my thinking

If you are 100% sure that when you see this pattern price goes down, then sell instead of buy, simple.

 

[HawaiianIceberg]

I could have drawn at the top. But ultimately it's the context that matters. For example, where does it close in relation to the previous resistance. If it's a failed breakout, should the high for that bar be counted as legit, etc? Consider the following scenario with regards to the chart below:

1) This is the high at that time, making it the resistance.
2) It pierced above 1 but failed to close above it.
3) Not only did it close below 1 it reversed and came back down to the support.
4) It retested 2 but also failed to close above 1.

But now that you have 2 and 4, you probably will want to redraw the resistance at the top. In either case, we're still in a chop zone and until price closes above 1 any probability of a breakout would be low IMO.

View attachment 342328

Great response. Thank you!!

 

[mute9003]

I
View attachment 342328

does it depend on the circumstance then where to draw the support and resistance lines?
I see that its a highly debated topic where to draw lines also. does the timeframe dictate then where ljnes are drawn? On the wicks or the body of the candle.
I personally found body of the candle to be more accurate.

And also since were on the topic of jonh wicks.
am i correctly understanding this?

The wick is a large order total within a short timeframe that pushes the price to a peak before being absorbed by opposite orders flowing through?

So for example a green wick on a one second candle for example wiuld be the fastest pace where it will not be multiple people casually punching their orders in.
( this is harder to verbalize than i thought lol)
Basically its a buy order or multiple orders going through at once pushing price up and then instantly being absorbed by sell orders?

 

[PPC]

does it depend on the circumstance then where to draw the support and resistance lines?
I see that its a highly debated topic where to draw lines also. does the timeframe dictate then where ljnes are drawn? On the wicks or the body of the candle.
I personally found body of the candle to be more accurate.

And also since were on the topic of jonh wicks.
am i correctly understanding this?

The wick is a large order total within a short timeframe that pushes the price to a peak before being absorbed by opposite orders flowing through?

So for example a green wick on a one second candle for example wiuld be the fastest pace where it will not be multiple people casually punching their orders in.
( this is harder to verbalize than i thought lol)
Basically its a buy order or multiple orders going through at once pushing price up and then instantly being absorbed by sell orders?

Forget about candlesticks, and green/red wicks for time being because the market does not care about candlesticks. First you need to understand that the market is just a supply and demand of orders being processed, and candlestick is just an “arbitrary map” and not the actual territory.

Each buy/sell order is a transaction which is then represented as a price tick, a then each trader organizes a bunch of those ticks by time and by arbitrary group into something like H1 candle, or 233 tick chart or whatever each individual trader prefers. For example, if you have H1 candlestick then instead of trying to interpret the H1 candlestick pattern, you can zoom in/out to surrounding timeframes say M15 and H2, and that should give you more information than just a candle on H1. Try it, and you’ll see how wicks will appear and disappear.

Instead of focusing on candlesticks, start learning how to recognize where clusters of orders are most likely going to be stacked (i.e. where buyers/sellers should step in) and then draw S/Rs based on this trading logic instead of some arbitrary wicks or candle bodies.

Once you become more proficient, then you’ll start to realize that certain swing points are irrelevant/relevant based on their location and PA history, thus giving you a clue of what kind of weak/strong order flow might be triggered around that zone. That way you’ll slowly start seeing charts with some trade logic, and not just as a bunch of lines.

Also remember that most S/Rs are not tradeable, each S/R needs to met certain criteria to make S/R suitable for a low risk / high probability trade. For example, I draw S/Rs and trendlines all the time on charts, however I know that I won’t take any trades off those lines because they’re low probability, I just draw them as reference points. You should learn to do the same, i.e. categories the lines into the tradeable (minority), and the untradable (majority). Google Marty Schwartz, in one of his videos (if it is still available) he also says that he draws lines, but won’t necessarily trade off them.

FO rtime being, you need to study few books on TA to get you started. At this stage you’re jumping the gun, and you won’t get very far byasking all these questions on a forum, you’ll be just getting more confused.

It takes years to become a trader, and if at this stage you’re still trading, then you’re gambling and not trading.

 

[SunTrader]

Forget about candlesticks, and green/red wicks for time being because the market does not care about candlesticks. First you need to understand that the market is just a supply and demand of orders being processed, and candlestick is just an “arbitrary map” and not the actual territory.

Each buy/sell order is a transaction which is then represented as a price tick, a then each trader organizes a bunch of those ticks by time and by arbitrary group into something like H1 candle, or 233 tick chart or whatever each individual trader prefers. For example, if you have H1 candlestick then instead of trying to interpret the H1 candlestick pattern, you can zoom in/out to surrounding timeframes say M15 and H2, and that should give you more information than just a candle on H1. Try it, and you’ll see how wicks will appear and disappear.

Instead of focusing on candlesticks, start learning how to recognize where clusters of orders are most likely going to be stacked (i.e. where buyers/sellers should step in) and then draw S/Rs based on this trading logic instead of some arbitrary wicks or candle bodies.

Once you become more proficient, then you’ll start to realize that certain swing points are irrelevant/relevant based on their location and PA history, thus giving you a clue of what kind of weak/strong order flow might be triggered around that zone. That way you’ll slowly start seeing charts with some trade logic, and not just as a bunch of lines.

Also remember that most S/Rs are not tradeable, each S/R needs to met certain criteria to make S/R suitable for a low risk / high probability trade. For example, I draw S/Rs and trendlines all the time on charts, however I know that I won’t take any trades off those lines because they’re low probability, I just draw them as reference points. You should learn to do the same, i.e. categories the lines into the tradeable (minority), and the untradable (majority). Google Marty Schwartz, in one of his videos (if it is still available) he also says that he draws lines, but won’t necessarily trade off them.

FO rtime being, you need to study few books on TA to get you started. At this stage you’re jumping the gun, and you won’t get very far byasking all these questions on a forum, you’ll be just getting more confused.

It takes years to become a trader, and if at this stage you’re still trading, then you’re gambling and not trading.

Disagree about first paragraph, rest too long.

Many times open/close are, equally - if not more so - as important as high/low values which candles accentuate.